Entry Barriers to House Keeping Manpower Business in India

House keeping Manpower Business is a Business to Provide Male / Female Manpower to Residential / Commercial Premises for Cleaning & Housekeeping activity. Normal in following Commercial Buildings they Need Commercial manpower Contractors.

1. Hotel, Hostels , Hospitals
2. School , Colleges , Universities
3. Factories, Industries apartments , Corporate Offices
4. Shopping Malls , Complexes , Commercial Buildings
5. Residential Apartments, Civil Societies etc.

Why It is a Profitable Business ?

1. Manpower Contract is always a Profitable Business because very Less / Negligible Capital Required to Start the Business.
2. There is no Loss of Business as always you will get Something.

1. People Work For you , for your Profits Here in this Business.
2. Revenue is very High in this Business , although Profit Percentage is Less than 10 % .
3. Leadership & Team Management Skills is the Key to Success in this Business.

Main Hurdles in This Business

These are the Following Hurdles when you Start Housekeeping Manpower Business.

Compliance Related barrier

As Deploying Housekeeping Manpower on Contractual Basis is very Difficult Due to tight Govt. Rule in India now a Days. So wherever you will go you will be asked For Certain Registration and Legal Compliance for Getting Contract, those Legal Compliance are as Following.

1. Firm Registration
2. PF Registration
3. ESIC Registration
4. GSTIN Registration
5. Labor Licence ( in more than 50 Manpower's Case )

without these Registration nobody will Entertain you. these Registrations may Cost you From 10000 - 40,000 (as an Initial Investment For Manpower Contract.

Experience Related Barriers

As Housekeeping & Cleaning activity is very Crucial for Some Industry like Hotels, Hospitals, Food Industries Shopping Complexes, it  Directly affects Business and Customer Satisfaction. so Owners don't take any Chance ( Experiments) in New hands even if you Quote lesser than then them.
Experience is a Real Barrier in Housekeeping Contract, Firstly work with Some Contractor then Make your Own Circle or work with an alliance.

we spoke to many Service Providers who don't have enough housekeeping Contract even after having all Legal Compliance with them that is only due to Lack of Experience.

Competition Related Barriers

There is always very Tight & Tough Situation For New baby's in Competition as the Existing Service Providers always Make Situation over Competitive, due to fear of Loosing Business. For Beating Existing Competitors you will have to Make Strategies for the Following .

1. Product / (Service) Related Strategies
2. Price ( Quote )  Related Strategies
3. Place ( Area ) Related Strategies
4. Promotion ( Marketing )Related Strategies
5. People ( Team Building )  Related Strategies

Without Proper Strategy and Planning you can Enter in Housekeeping / Manpower Business in Your Risk. We Suggest For the Proper Strategy.

Financial Barriers

Although Housekeeping Business will Boost your Revenues in the Sky but the Profit Margin is very Low in this Business, Generally it Lies in Between 5 % to 10 % and if you Can Earn More than 10 % you are a Genius you Should Keep going own.

Example : Suppose you Want to Earn 25000 Rs/ Month From This Business

• Profit margin is - 10 %
• Total Revenue Required - 2,50,000
• Manpower Required to Deploy at least - 25 - 30

For Deploying 25 Manpower you Need 2.5 Lac Rupees in Your Pocket to Distribute the Salaries and advances During and end of the Month , as Organization always Delayed in Releasing Payment For Contractor , it is Regular in Practice.

What will Happen if i Will Delay the Labor Payment ?

As You will Delay Labor Payment Labor will Leave faith in you and will Try Some Other Contractors who Can Pay them Salary On time and advances During the Month when they Need.

Operation Related Barriers

If you will Study there is none of the Manpower Contract Company in Fortune  500 Hundred Company in the World,  you Know Why ?


Because Handling Different Minds , Culture , Community , Religion is very Difficult , only at Certain Level you Can Manage, when it Explode actually it Destroyed the House Keeping Manpower Business. Here i am Giving Some facts that Show Operation Related Barriers.

1. Hard to Find Labor when you Need.
2. Absenteeism without Information is the Main Issue for Serviceability.
3. Iteration Rate is High ( Labor Changes job and Contractors very Frequent on Small Issues )
4. Punctuality is Difficult to Maintain
5. Dissatisfaction From Labor in absence of advances during the Month Before Salaries.
6. Payment Process, Billing , Invoicing , Compliance , Salary Distribution , advance Distribution , Documentation, account Opening,  whole activity Manpower Contractor have to Manage.
7. In Case of any Damage & theft From Labor Contractor have to Pay for it.
8. in any fatal accident , Disease Due to Work Contractor  will be liable.
9. Owner when Remove Contract Labor is Impossible to Retain until you have New Contract to Settle.
10. in Case of Deduction or Non Payment From Owners , Contractors are Liable.

People Related Barriers to House Keeping Manpower Business

People/ Workers / Labor are the Main Revenue Source in House Keeping Manpower Business , their Minds are not Constant or stagnant at all time. People are the Raw Material Here and People only the Finished Good. People management skills and Team Management Skills only will Grow Your House Keeping Manpower Business. Here are Some Mazor Barriers Related to People management.

1. People Make Groups when Work Together, Later on they Force Contractor for Salary Increase.
2.  Labor/ Workers Fights , Sometimes verbal & Physical Fight too on Small Issues.
3. Females Staff are unsafe due to Criminal Mind Some Time.
4. Strike & Work Stop From labor Suffers Business.
5. absenteeism without Information is their Habit.

These are 5 Barriers For Starting any Housekeeping or Manpower Business, Try to Work on all these Barriers Befor Starting House Keeping Manpower Business. We Really Want you People to Learn & Run House Keeping Manpower Business Successfully . Write Us for More Information @ info@neatnclean.in